ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has clarified that proposed companies bill does not require all overseas Pakistanis to file the return of their offshore assets.
It is totally in disregard to the requirements of the said provision, i.e. section 452 of the proposed law. The said provision only requires disclosure by Pakistani nationals whether residing in Pakistan or abroad and either holding substantial shares (10 percent) in a company registered in Pakistan or holding the position of director or officer in such company to disclose their beneficial ownership in a company incorporated outside Pakistan and not their total assets.
Section 452 of the Proposed Bill is as follow: 452. Companies’ Global Register of Beneficial Ownership. (1) Every substantial shareholder or officer of a company incorporated under the Company law, who is citizen of Pakistan within the meaning of the Citizenship Act, 1951 (II of 1951), including dual citizenship holder whether residing in Pakistan or not having shareholding in a foreign company or body corporate shall report to the company his shareholding or any other interest as may be notified by the Commission, on a specified form within thirty days of holding such position or interest.
Explanation. For the purposes of this section the expression “foreign company” means a company or body corporate incorporated or registered in any form, outside Pakistan regardless of the fact that it has a place of business or conducts any business activity or has a liaison office in Pakistan or not.
(2) The company shall submit all the aforesaid information received by it during the year to the registrar along with the annual return.
(3) Any investment in securities or other interest as may be notified in sub-section (1) by a company incorporated under this Act, in a foreign company or body corporate or any other interest shall also be reported to the registrar along with the annual return.
(4) All the above information shall be reported to the registrar through a special return on a specified form within sixty days from the commencement of this Act and thereafter in accordance with the sub-section (2).
(5) Any contravention or default in complying with requirements of this section shall be an offence liable to a fine of level 1 on the standard scale and the registrar shall make an order specifying time to provide information under sub-section (1) and (3).
(6) Any person who fails to comply with the direction given under sub-section (5) by the registrar shall be punishable with imprisonment which may extend to three years and with fine up to five hundred thousand rupees or both.
(7) The Commission shall keep record of the information in the Companies’ Global Register of Beneficial Ownership.
(8) The Commission shall provide the information maintained under sub-section (7) to the Federal Board of Revenue or to any other agency, authority and court.
